Futures/Forex Levels with commentary from Jason – JenkinsRM

Futures/Forex Levels with commentary from Jason

Treasury prices were firmer in Asia as Japanese bank portfolios bought the front-end and insurers continued to scoop 30yr paper. There was paying reported by corporates and also some steepening trades in 5/30yrs swaps space. Turning to Europe, core fixed income is better on the day by 2bps after unexpected drop in European equities which has subsided since the open. On tap today, we have Jobless Claims, Fedchatter from Bullard and Brainard at 10am, and then the 7yr auction at 1pm. View: The demand for both 2yr and 5yr has been suprisingly strong given my thoughts of a nearby June rate hike. That said, we reached levels in the 10yr (2.3%) where buying was desirable for both foreign and domestic accounts. With all the chatter of further terror cells within the UK, possible engagement with North Korea very soon, and the long holiday weekend in the US I dont think treasuries sell off in any meaningful way and remain overall choppy in a sideways range trade.